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Strategies & Market Trends : Can you beat 50% per month? -- Ignore unavailable to you. Want to Upgrade?

To: Smiling Bob who wrote (12590)	12/5/2007 9:28:07 AM
From: Smiling Bob	Read Replies (2) \| Respond to of 19256

DOW - this morning's pop will be the shortest on record Deep in the red by 10 am as faces get slapped See zero reason for anything but down. Were retail sales not below forecasts??? edit why is mkt set for strong rebound after 2 day "slide?" 100 points is a slide? Ready for a rebound Investors look ready to wade back into the market; crude prices in focus after OPEC leaves production unchanged. December 5 2007: 8:41 AM EST NEW YORK (CNNMoney.com) -- U.S. stocks looked set for a strong rebound Wednesday from a two-session slide, as rising hopes for rate cuts overcame a jump in oil prices that followed a decision by OPEC to leave global production unchanged. At 8:40 a.m. ET, Nasdaq and S&P futures were sharply higher, pointing to a strong start for stocks. OPEC members decided tokeep output steady at a meeting in Abu Dhabi, saying that market fundamentals and global supplies did not justify increased production, although the oil cartel announced it would meet again in February to consider the issue again. Oil prices shot up $1.49 to $89.81 in electronic trading on the news. Prices had fallen from a record high near $100 a barrel to under $90 in the last week on hopes of a production increase from the oil cartel. Peter Cardillo, chief market economist with Avalon Partners, said that even though higher oil prices are not good for the market, the OPEC decision did provide one lift for the markets, signaling that oil producers expect global consumption and economic activity to stay strong. "Psychologically the fact that OPEC did not open its spigots shows that there's enough demand out there," he said. Trading in oil prices likely will be affected by the weekly report on U.S. fuel inventories, due at 10:30 a.m. ET. The report is expected to show crude stockpiles fell by 800,000 barrels, while gasoline supplies grew by 900,000 barrels, according to forecasts of analysts surveyed by Dow Jones Newswires. Cardillo said investors are also looking ahead to Friday's November employment report, which is expected to show only a modest 70,000 gain in workers on U.S. payrolls. Ahead of that report, payroll processor ADP announced early Wednesday that its own index showed private sector employers added a much stronger than expected 189,000 jobs in November. Cardillo said even with the ADP report, expectations for modest U.S. jobs gains are feeding hopes of a half percentage point interest rate cut by the Fed at its Dec. 11 meeting. An article in Wednesday's Wall Street Journal that said that Fed officials will likely consider the larger cut, altough it cautioned that was by no means certain. The hopes were a rate cut were helped by a report that showed third quarter productivity much stronger than both forecasts and the original government estimate, a gain that helped cut unit labor costs for employers. There's a slew of second-tier economic reports due Wednesday, including readings on factory orders and service sector growth from the Institute of Supply Management. Stocks in the news included Fannie Mae (Charts), which slashed its dividend after the market close Tuesday and said it would offer $7 billion of stock after getting slammed by the mortgage crisis. Shares of the battered mortgage lender were off 1.5 percent in pre-market trading. The New York state attorney general's office is looking into how several Wall Street firms packaged and sold subprime mortgage debt, according to the Wall Street Journal. The newspaper said prosecutors sent subpoenas to Merrill Lynch (Charts, Fortune 500), Bear Stearns (Charts, Fortune 500) and Deutsche Bank. Both Merrill and Bear Stearns shares gained in pre-market trading after sharp declines Tuesday, while Deutsche Bank (Charts) shares were up modestly in Frankfurt trading. Computer maker Dell (Charts, Fortune 500) announced a $10 billion share repurchase plan after the market close Tuesday, sending shares of the tech bellwether up 1 percent in pre-market trading. Retailer Home Depot (Charts, Fortune 500), a Dow component, also saw its shares up nearly 1 percent in pre-market trading after it announced cost cutting moves, saying it would eliminate nearly 1,000 jobs and close three call centers. In global trade, major markets in Asia finished the session higher. European stocks rose in midday trading. To top of page Check futures